Handling a home mortgage, while dealing with a financial crisis, can be a big blow. When you are falling behind for your mortgage payments, you are actually risking facing a foreclosure on your property.
This is the standard fact when you own the property in the same state. But what about the property which is out of state? Is the procedure of foreclosure the same? If possible, can you reverse this situation and keep the property too? Having these questions in mind is common. And for that, you need to know the right facts. Only an experienced Pittsburgh bankruptcy lawyer can help you understand the situation and give you all the necessary answers.The Process of Foreclosure
When you are falling behind for your mortgage payment, it is obvious that you will be facing foreclosure. The process of it is surely a daunting one. But the good part of foreclosure is that it doesn’t happen overnight. It consists of step by step process that takes time. And that is what can be useful for you. It can buy you some time which you can use for stabilizing your finances.
Typically, at first, you will get a notice from your bank which generally comes with a short grace period. If the mortgage payment has been stopped for some small reason, this can be the best time to rectify it and start the payment. After this, you will get a notice of default or NOD. This you will get after an approximate time of 30 days without payment. This NOD will also give you some time so that you can cure the default and make the payments. Or after this, you will be facing foreclosure.
If you fail to initiate payment after these initial warnings, you will get the notice for foreclosure. The notice of foreclosure will contain a lot of useful information like the amount you owe to the bank, the interest of that, and the attorney information. Once you receive the notice, the bidding will start. After that, the property will go to the highest bidder. Often in most cases, the highest bidder is the bank. After that, you will have to vacate the property or you will be evicted.State Foreclosure Law
When it comes to foreclosure of out of state property, it can be divided into two different groups:
- Judicial that use mortgages
- Non-judicial or which use the deeds
If you own a property in Pennsylvania, then the foreclosure will be judicial and will take 270 days of processing, the longest process period in the country. For this kind of judicial foreclosure, the court will get involved. This means that you will be receiving a summons and the foreclosure will take place in court.
If you are in Pennsylvania and have a property in a different state, this secondary home will be a non-exempt property which means this will be subjected to relinquishment to the creditors during your bankruptcy. Now, whether this secondary home will be foreclosed on or not, will be a matter of cost vs. benefit.
For further details, come to Pittsburgh Bankruptcy Law Group. Our Pittsburgh bankruptcy lawyer will help you understand it better.